Study Finds No Link Between Hospitals' CEO Pay and Quality

HARRISONBURG, Va. (WHSV) -- A recent national study looked into the relationship between a hospital's CEO salary and the quality of health care given and found that CEO salaries aren't linked that closely with quality.

We contacted two local hospitals, Augusta Health and RMH, to learn how they pay their CEO.

Augusta Health hires an outside firm to compare how much similar hospitals pay. It's goal is to be competitive with other hospitals, but not overpay.

Augusta Health's CEO, Mary Mannix, is given a base salary and can earn more if she meets certain criteria; one of which is the quality of health care at the hospital.

"It's the first item on our agenda as a board when we meet; quality is the first committee that reports. It's reflected as we consider compensation for the executives, quality is a key component of that as well," said John Peterson, the chairman of the board for Augusta Health.

RMH is part of a larger organization of eleven hospitals, Sentara Healthcare.

Sentara sent us the following statement regarding how their CEO, David Bernd, is compensated.

"Mr. Bernd's compensation takes into account his 40-year tenure of leadership at Sentara, with nearly 20 serving as the organization's top executive. His pay reflects his experience, expertise and the performance of Sentara as measured by clinical quality outcomes, patient satisfaction and financial performance." is happy to provide a forum for commenting and discussion. Please respect and abide by the house rules:

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